Buyer Representation: Why it Matters & What Are the Options

There are two basic ways a real estate broker can work with a buyer.  They can act as a transaction broker or as a buyer’s agent.  So, what’s the difference?

Transaction Broker
According to the Division of Real Estate’s definitions of working relationships, “A transaction-broker assists the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting the parties with any contracts, including the closing of the transaction without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care in the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction-broker concerning a property or a buyer’s financial ability to perform the terms of a transaction and, if a residential property, whether the buyer intends to occupy the property. No written agreement is required.”

Buyer’s Agent
According to the Division of Real Estate’s definitions of working relationships, “A buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer. The buyer’s agent must disclose to potential sellers all adverse material facts actually known by the buyer’s agent including the buyer’s financial ability to perform the terms of the transaction and, if a residential property, whether the buyer intends to occupy the property.  A separate written buyer agency agreement is required which sets forth the duties and obligations of the broker and the buyer.”

A good analogy I once heard is that a transaction broker is similar to a referee, whereas an agent is more like a coach.  Below is a list of duties carried out by a broker versus an agent during various stages of a real estate transaction.

Most buyers prefer the additional duties an agent provides because it gets them the best house for the best price at the best possible terms.  And, most real estate professionals prefer to work as agents rather than brokers because it allows them to provide the best possible service to their clients.  However, it is entirely up to you and your real estate professional as to which way you want to work together.  

Colorado Springs Real Estate Professionals – TEAL Pro Team backed by EXIT Realty Mountain View

Natalie Olmsted and Jennifer Mencl are motivated REALTORS® specializing with Future First Time Home Buyers and Last Time Home Sellers located in the following areas; Colorado Springs, Pueblo, Monument, Peyton, Fountain, and surrounding areas. Natalie and her team strive to provide you the very best service to make your real estate experience stress free. Call Natalie Olmsted at 719.287.8067.